US ad employment fell by 1,000 jobs in February

Source: Bureau of Labor Statistics. Seasonally adjusted. Expanded jobs data: AdAge.com/adjobs. Credit: Infographic by Ad Age. Photo: iStock Employment in advertising, public relations and related services fell by 1,000 jobs in February, the fourth drop in the past six months. For the overall economy, U.S. employers added 311,000 jobs in February, a pullback from January’s sizzling job growth but a better-than-expected number that demonstrates continued strength in the labor market, according to the monthly employment report from the U.S. Bureau of Labor Statistics. The unemployment rate rose to 3.6% in February from a generation low of 3.4% in January. Below, Ad Age Datacenter breaks down the report—by the numbers. Advertising, PR and related services U.S. employment in the Bureau of Labor Statistics (BLS) classification of advertising, public relations and related services came in at 494,300 jobs in February based on seasonally adjusted figures. The ad market lost 1,000 jobs in February following an increase of 2,000 jobs in January. BLS upwardly revised the January figure from a preliminary gain of 1,400 jobs it reported a month ago. Advertising employment has seesawed over the past six months: It fell in September, November, December and February; it rose in October and January. After strong gains in 2021 through summer 2022 as the ad market rebounded from pandemic losses, ad employment has plateaued. When all is said and done, ad staffing in February (494,300) was almost unchanged from September (494,000). This BLS jobs bucket includes ad agencies, PR agencies and related services such as media buying, media reps, outdoor advertising, direct mail and other services related to advertising. Ad agencies account for the biggest portion—about 46%—of those jobs. Tracking layoffs and budget cuts How brands and agencies are bracing for a recession Click here Ad agencies U.S. ad agencies cut 700 jobs in January after trimming 1,100 jobs in December. BLS revised the December figure from a preliminary loss of 1,600 jobs it reported a month ago. Ad agency employment fell to 226,200 jobs in January on a non-seasonally adjusted basis, dropping for the third consecutive month after reaching an all-time high of 228,700 jobs in October. A January drop was no surprise. Ad Age Datacenter’s analysis of BLS data shows that ad agency employment on a non-seasonally adjusted basis in January vs. December fell every year from 2001 through 2023. BLS reports ad agency employment on a one-month lag, so February figures aren’t yet available. Agencies including Interpublic Group of Cos.’ Huge have had layoffs since the start of the year amid signs of softness in the ad market. U.S. ad agency employment January 2023 vs. previous month: -700January 2023 vs. year earlier: +11,500 Source: Bureau of Labor Statistics. Not seasonally adjusted. Expanded jobs data: AdAge.com/adjobs. Ad spending, marketing and financial stats Analyzing the latest data Click here Unemployment rate The U.S. unemployment rate, based on a separate survey of households, rose to 3.6% in February from 3.4% in January. January’s unemployment rate was the lowest since 1969. February’s rate was a tick above the jobless level on the eve of the COVID-19 pandemic in February 2020 (3.5%). U.S. unemployment rate February 2023: 3.6% Source: Bureau of Labor Statistics. Seasonally adjusted. U.S. employment The nation in February added 311,000 jobs based on seasonally adjusted figures. The economy added 504,000 jobs in January (downwardly revised from 517,000 jobs) and added 239,000 jobs in December (downwardly revised from 260,000 jobs). Following an unprecedented loss of 20.5 million jobs in April 2020 as the nation locked down in the coronavirus pandemic, the economy has added jobs every month except for December 2020. Total U.S. employment (155.4 million jobs in February) has recovered all of its pandemic losses, topping its February 2020 pre-pandemic peak (152.4 million) to reach a new all-time high. The World Health Organization classified COVID-19 as a pandemic in March 2020. Ad Age Datacenter subscribers can see an expanded and updated table showing advertising employment back to 2000 at AdAge.com/adjobs. That table incorporates data revisions that BLS made in February 2023 in its annual benchmarking process and updating of seasonal adjustment factors. The table also reflects BLS revisions to industry classifications based on the 2022 North American Industry Classification System. Month-to-month change in U.S. nonfarm payrolls February 2023 vs. previous month: +311,000 Month/year Jobs increase (decrease) Jan. 2022 364,000 Feb. 2022 904,000 March 2022 414,000 April 2022 254,000 May 2022 364,000 June 2022 370,000 July 2022 568,000 Aug. 2022 352,000 Sep. 2022 350,000 Oct. 2022 324,000 Nov. 2022 290,000 Dec. 2022 239,000 Jan. 2023 504,000 Feb. 2023 311,000 Source: Bureau of Labor Statistics. Seasonally adjusted. Top marketers, brands and agency ventures Ad Age Datacenter’s definitive rankings of the biggest U.S. and global advertisers and agency companies Click here Subscribe to Ad Age's Datacenter for ongoing data and insights on all of the most-advertised brands.

US ad employment fell by 1,000 jobs in February

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